India fails to strike oil trade deal with Pakistan

Islamabad: India and Pakistan have failed to strike an oil trade agreement after Islamabad asked Delhi to compete in tenders floated by Pakistan State Oil (PSO) for oil supply through the land route, according to a report.

Sources revealed that Pakistan asked Indian authorities to participate in PSO tenders for oil supply through the land route of Wagah, which is currently not allowed.

Pakistan, which has a long-term oil supply agreement with Kuwait Petroleum Corporation (KPC), is interested in importing petrol, diesel and furnace oil.

However, it will meet only additional oil requirements from India and will continue to import from the Gulf countries, including Kuwait, the Express Tribune reports.

“We will continue to import oil from Kuwait and other Gulf countries in a bid to ensure secured supplies,” the paper quoted a government official, as saying.

The official added that imports from India would not be more than 20 percent to 25 percent because of security considerations.

The official pointed out that Pakistan wanted to keep other sources of oil supply open, so that it could get oil from them if India stopped shipments in case of some tension.

According to the paper, in case of a long-term supply contract, India had offered to lay an oil pipeline from its territory to Pakistan’s border to meet entire fuel requirements of the neighbour.